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Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.2, 2013 159 Factors Influencing to Bangladeshi Consumers’ Mobile Phone Operators Choice and Change Behavior Md. Kamrul Hasan (Corresponding author) 1* Aysa Yeasmin 2 Prodip Dey 3 1. Assistant Professor, Faculty of Business & Social Sciences, Sylhet International University, Sylhet 2. Senior Lecturer, Faculty of Business & Social Sciences, Sylhet International University, Sylhet 3. Lecture (part time), Department of Business Administration, Sylhet International University, Sylhet *e-mail of the corresponding author [email protected], Abstract The prime objective of the study is to better understanding of the factors influencing customers’ mobile phone operators choice and change behavior as well as to explore the variation in the importance given by different customer groups while choice mobile phone operators. Both primary and secondary data were used and data were collected from 174 respondents by means of a survey method, using self-administered questionnaires distributed to the respondents at the study area irrespective of respondents’ socio-demographic characteristics. The study explored that call charge, network coverage, faster internet service and promotional package such as bonus on recharge, cash back on use are the main features that influence consumers’ mobile phone operators’ choice and switching behavior. The study also found that there are no significant differences between stayers and switchers with respect to influencing factors except factor 1, supplementary services and factor 2, value added services. Both groups gave more importance on service price and connectivity and mobility factors. So, marketing strategies should be designed and executed by the companies to attract and retain their customers by lowest possible price, strong network coverage and faster internet service. Key words: Mobile phone operators, Choice and change behavior, Digital Bangladesh, Factor analysis 1. Introduction The new millennium consumer tends to enjoy life. Mobile phones today have moved beyond its fundamental role of communications and have graduated to become an extension of the personality of the user. In recent years, mobile phones communication has become a fundamental part of personal communication across the world and the adoption of mobile phones communication has been exceptionally rapid in many parts of the world. Like other countries in the world, Bangladesh has adopted information and communications technologies (ICTs) as tools for development. In Bangladesh mobile phone companies started to penetrate the market in large quantities after 1997. In that year Bangladesh liberalized its telecom policy by allowing multiple private telecom operators to operate their business in the country. At the same time, operators, especially internet service providers (ISPs) were also allowed to use VSAT (very small aperture terminal) satellite systems for overseas communication, resulting in internet connectivity being opened up in the country. Moreover, the present ruling party currently has a declaration on building a “Digital Bangladesh” by 2021, which shows the government’s commitment. In recent years the uses of mobile phones have witnessed tremendous growth in Bangladesh. Recent data show that total number of Mobile Phone subscribers has reached 89.457 million at the end of March 2012 in Bangladesh (subscribers' numbers are declared by the mobile operators: BTRC source). There are six mobile phone operators offering their services to customers in Bangladesh. Grameen Phone Ltd. (GP) owned by Telenor (62%) and Grameen Telecom (38%) is the largest and the fastest growing cellular service provider in Bangladesh. It has 37.633 million subscribers which is 42.07% of total. Orascom Telecom Bangladesh Limited (Banglalink), the second largest cellular service provider, has 24.741 million subscribers which is 27.65% of total. It is a wholly owned subsidiary of Orascom Telecom. Robi Axiata Limited (Robi), the 3rd largest cellular service provider in Bangladesh, has 17.664 million subscribers which is 19.74% of total. The fourth largest cellular service provider in Bangladesh is Airtel Bangladesh Limited (Airtel) which has 6.345 million subscribers, a 6.34% of total. The other two mobile phone operators in Bangladesh are Pacific Bangladesh Telecom Limited (Citycell), it has 1.786 million subscribers which is 1.78% of total and Teletalk Bangladesh Ltd. (Teletalk), it has 1.285 million subscribers which is 1.28% of total market share. Year by year the number of people who are using and owning cellular phone substantially increases in Bangladesh. Contrary to the introduction years of cell phone, today it has been used by almost all age groups, and by both males and females, and the gap between age groups and the gap between males and females with respect to usage/ownership decreases. Consumer behavior is the study of how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Consumers can prefer certain products, brands or companies over others, and to understand the reason behind these choices is exceptionally essential in order to market existing products more effectively than rivals. Mobile phone service markets are one of the most

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Page 1: Factors Influencing to Bangladeshi Consumers’ Mobile Phone Operators Choice and Change Behavior

Journal of Economics and Sustainable Development www.iiste.org

ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)

Vol.4, No.2, 2013

159

Factors Influencing to Bangladeshi Consumers’ Mobile Phone Operators

Choice and Change Behavior

Md. Kamrul Hasan (Corresponding author)1*

Aysa Yeasmin2 Prodip Dey

3

1. Assistant Professor, Faculty of Business & Social Sciences, Sylhet International University, Sylhet

2. Senior Lecturer, Faculty of Business & Social Sciences, Sylhet International University, Sylhet

3. Lecture (part time), Department of Business Administration, Sylhet International University, Sylhet

*e-mail of the corresponding author [email protected],

Abstract

The prime objective of the study is to better understanding of the factors influencing customers’ mobile phone

operators choice and change behavior as well as to explore the variation in the importance given by different

customer groups while choice mobile phone operators. Both primary and secondary data were used and data were

collected from 174 respondents by means of a survey method, using self-administered questionnaires distributed to

the respondents at the study area irrespective of respondents’ socio-demographic characteristics. The study

explored that call charge, network coverage, faster internet service and promotional package such as bonus on

recharge, cash back on use are the main features that influence consumers’ mobile phone operators’ choice and

switching behavior. The study also found that there are no significant differences between stayers and switchers

with respect to influencing factors except factor 1, supplementary services and factor 2, value added services. Both

groups gave more importance on service price and connectivity and mobility factors. So, marketing strategies

should be designed and executed by the companies to attract and retain their customers by lowest possible price,

strong network coverage and faster internet service.

Key words: Mobile phone operators, Choice and change behavior, Digital Bangladesh, Factor analysis

1. Introduction

The new millennium consumer tends to enjoy life. Mobile phones today have moved beyond its fundamental role

of communications and have graduated to become an extension of the personality of the user. In recent years,

mobile phones communication has become a fundamental part of personal communication across the world and

the adoption of mobile phones communication has been exceptionally rapid in many parts of the world. Like other

countries in the world, Bangladesh has adopted information and communications technologies (ICTs) as tools for

development. In Bangladesh mobile phone companies started to penetrate the market in large quantities after 1997.

In that year Bangladesh liberalized its telecom policy by allowing multiple private telecom operators to operate

their business in the country. At the same time, operators, especially internet service providers (ISPs) were also

allowed to use VSAT (very small aperture terminal) satellite systems for overseas communication, resulting in

internet connectivity being opened up in the country. Moreover, the present ruling party currently has a declaration

on building a “Digital Bangladesh” by 2021, which shows the government’s commitment. In recent years the uses

of mobile phones have witnessed tremendous growth in Bangladesh. Recent data show that total number of

Mobile Phone subscribers has reached 89.457 million at the end of March 2012 in Bangladesh (subscribers'

numbers are declared by the mobile operators: BTRC source).

There are six mobile phone operators offering their services to customers in Bangladesh. Grameen Phone Ltd.

(GP) owned by Telenor (62%) and Grameen Telecom (38%) is the largest and the fastest growing cellular service

provider in Bangladesh. It has 37.633 million subscribers which is 42.07% of total. Orascom Telecom Bangladesh

Limited (Banglalink), the second largest cellular service provider, has 24.741 million subscribers which is 27.65%

of total. It is a wholly owned subsidiary of Orascom Telecom. Robi Axiata Limited (Robi), the 3rd largest cellular

service provider in Bangladesh, has 17.664 million subscribers which is 19.74% of total. The fourth largest

cellular service provider in Bangladesh is Airtel Bangladesh Limited (Airtel) which has 6.345 million subscribers,

a 6.34% of total. The other two mobile phone operators in Bangladesh are Pacific Bangladesh Telecom Limited

(Citycell), it has 1.786 million subscribers which is 1.78% of total and Teletalk Bangladesh Ltd. (Teletalk), it has

1.285 million subscribers which is 1.28% of total market share. Year by year the number of people who are using

and owning cellular phone substantially increases in Bangladesh. Contrary to the introduction years of cell phone,

today it has been used by almost all age groups, and by both males and females, and the gap between age groups

and the gap between males and females with respect to usage/ownership decreases.

Consumer behavior is the study of how individuals, groups, and organizations select, buy, use and dispose of

goods, services, ideas, or experiences to satisfy their needs and wants. Consumers can prefer certain products,

brands or companies over others, and to understand the reason behind these choices is exceptionally essential in

order to market existing products more effectively than rivals. Mobile phone service markets are one of the most

Page 2: Factors Influencing to Bangladeshi Consumers’ Mobile Phone Operators Choice and Change Behavior

Journal of Economics and Sustainable Development www.iiste.org

ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)

Vol.4, No.2, 2013

160

turbulent market environments today due to increased competition and change. On the other hand, the companies

are trying to make profit and even survive in a highly competitive environment. Thus it is of growing concern to

look at consumer buying decision process and cast light on the factors that finally determine consumer choices

between different mobile operators. Today, it becomes extremely important to learn the factors that are influencing

consumers’ purchase decisions of mobile phone services. Moreover, it is important to distinguish between buying

behavior in choosing among different mobile phone operators and change aspects referring to reasons that affect

change. So far we know, there is no depth study has been conducted covering these issues. The present study is an

ample step in covering this gap.

2. Objectives of the study

The main objectives of the study are;

2.1. To find out the features which influence customers to choose cell phone operators?

2.2. To find out the reasons behind the customers switching to other cell phone operators.

2.3. To investigate whether there are any differences among consumers groups regarding the factors

influencing cell phone operators’ choice.

3. Methodology of the study

The study is based on both primary and secondary data. The sample population for this study was composed of

people who lived in Sylhet metro area. A non probability convenient sampling technique was used to collect

primary data by means of a survey, using self-administered questionnaires distributed to the respondent at study

area irrespective of respondents’ socio-demographic characteristics. The first part of the questionnaire was

constructed with different services of cell phone operators which influence customers’ to choose cell phone

operators using a scale of 1 to 5 (5 being very important and 1 being not at all important). Second part of the

questionnaire consists of services which influence customers to switch other operators using a scale of 1 to 5 (5

being highly influential and 1 being not at all influential). Customers were grouped into; stayers (those who had

never switched from previous operator), and switchers (who switched from previous operator because of different

reasons). Appropriate statistical analyses such as frequencies, descriptive, analysis of Variance (ANOVA), factor

analysis, correlation analysis were used to satisfy the major objectives. The factor analysis was conducted to

create correlated variable composites from the total attributes. The researchers collected secondary data from

relevant research report and publications, newspapers, books, website and companies manuals.

4. Analysis and Findings of the study: The analysis and discussion of the study are structured from three points

of view:

4.1. To find out the socio-demographic characteristics of the customers with respect to their group;

4.2. To find out the major services which influence customers' choice of cell phone operators and the reasons

to switch other operators?

4.3. To investigate whether the derived influencing factors varied regarding to different customers’ customers

group;

4.1. Customers Socio-demographic characteristics and Mobile phone operators use

4.1.1. Frequency distribution of Mobile phone operators according to customers group

Different customers value a product or a firm differently. Therefore, all products are not meant for all customers

(Ganesh et al, 2000). Table 1 shows the frequency distribution of cell phone operators and different customers

group.

Table 1(Appendix) illustrated the frequency distribution of cell phone users by the respondents’ category. The

respondents were asked to mention which operators’ services they used as first brand and which operators’

services at present they are using. The result shows that the highest, about 62%, customers used GP at the

beginning. Among 109 customers 32 are staying with GP and 77 switched to other operators. The second highest

customers used Banglalink at the very beginning, which is about 18.39%. Among them 22 are staying with

Banglalink and 10 switched to others. About 8.04 % of customers used Aktel/ Robi among them 9 are staying

with existing operator and 5 switched to other operators. In other words, 4.02% of customers used citycell, and

Teletalk and 2.87% of customers used Warid/ airtell during the study period.

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4.1.2. Frequency distribution of respondents’ socio-demographic profile according to customers group

The theory of consumer behavior for a service sector points out that customers’ choice behavior, buying behavior

and levels of satisfaction are influenced by the customer’s background, characteristics and external stimuli.

(Fornell C, 1992). Respondents Socio-Demographic Profile according to purpose of use is given in Table 2.

Tables 02 (Appendix) provide the respondents’ demographic information. Out of a total of 174 respondents

listed for analysis, 137 (67.2%) were male and 57 (32.8%) were female. Data were collected from different age

group. Large group of respondents were from 19-35 (94.8%) age group, followed by 36-50 (5.2%) age group.

Surprisingly, highest (105) 60.3% of the respondents have completed graduation level followed by (57) 32.8%

completed post graduation level. In addition, 111 (63.8%) respondents were students, where as 57 (32.8%)

respondents answered that they were serviceman, followed by 6 (3.4%) were self employed in different profession

at the time of the survey. Respondents listed 75.9% have their income up to Taka 20,000, followed by 15.5 % have

income range Taka 20,000-Taka 40,000, 6.9% have 41,000-60,000 Taka per month. The sample distribution

provides a clear idea that male, young with graduate education and students are the main users of cell phone.

4.2. Consumers’ Cell Phone Operators’ Choice Decisions and Influencing Factors

4.2.1. The Features Influencing Consumers’ Cell Phone Operators’ Choice Decisions

Consumers, who participated to this survey, were given a list of services related with cell phone operators and then

they were asked to show how important these features for them while purchasing net work connection of a

company. Respondents who found a feature “very important” gave “5” to that item while others who found it “not

at all important” gave “1”. Table 3 shows the importance means given to the features by customers while choice

services of a particular operators.

The table 3 (Appendix) shows the value mean and standard deviation (SD), which indicates the degree of

importance given by the customers on choosing variables of cell phone operators’ services. It was seen in Table 3,

Network Coverage, Call charge/ rates to others operators, Call/ SMS/ MMS Charge/ Rates, Per second based

pulse and faster internet service have been scored more and which had the following highest mean values 4.93,

4.53, 4.63, 4.41, 4.41 and 4.40 respectively. On the other hand, the lowest importance were given by the customers

on the services of News, sports and other update services, and Horoscope, fun, greetings, ring tone services

which mean value is 3.14 and 2.47.

4.2.2. The Features Influencing Consumers’ Cell Phone Operators’ Switching Behavior

Table 4 shows the means score given to the features by customers while they change current one and switch to

other brands.

The table 4 (Appendix) shows the value of mean, standard deviation (SD) and variance (V), which indicates the

degree of importance given by the respondents on switching variables of cell phone operators’ services. It was seen

in Table 4 low call charge, wide and strong network coverage, and bonus or cash incentive on use and recharge are

the main features which influence customers to switch other operators, and which had the following highest mean

values 3.96, 3.63, 3.61 respectively. But the less important reason is various entertainment services which mean

value is 2.98.

4.2.3. Results of Features Affecting Cell Phone Operators Choice and Change Behavior

The figure shows the summary of important attributes to choose cell phone operators and major reasons to switch

others operators from previous operators. Results summary are presented in figure 1

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The figure shows that customers give more importance on the strong and wide network coverage, call charge, and

faster internet features while choice, select and purchase mobile phone operators service. On the other hand

existing customers switch to other operators for getting low call charge, wide and strong network coverage and

incentives. Surprisingly, customers switched to other brands when existing operators are failed to trace out

customers expectation and also fail to meet up their desired expectation.

4.2.4. Factor Influencing Consumers Cell Phone Operators Choice Decision

After identifying important features to choose and change by the respondents, the authors tried to group them

under some factors by Factor Analysis through SPSS 19. In this study, 5 factors are retained only which had

values greater than 1.0 of eigenvalue and a factor loading greater than 0.4. The principal components factor

method was used to generate the initial solution. The overall significance of the correlation matrix was 0.000, with

a Bartlett test of sphericity value of 457.06 with degree of freedom 210. The statistical probability and the test

indicated that there was a significant correlation between the variables, and the use of factor analysis was

appropriate. The Kaiser-Meyer-Olkin overall measure of sampling adequacy was 0.734, which was meritorious

(Hair, Anderson, and Black 1999).

Table 5 illustrates the results of the factor analysis. The eigenvalues suggested that five-factor solution explained

59.53% of the overall variance before the rotation. The Cronbach’s alpha coefficients ranged from 0.690 to 0.841

for the five factors. The results were considered more than reliable, since 0.50 is the minimum value for accepting

the reliability test (Nunnally, 1967).

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Table 5 shows the result of factor analysis of the various of cell phone operators services

Factors Communal

ities

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5

Factor 1, Supplementary Services

Group conference facility .722 .755

Horoscope, fun, greetings, ring tone services .711 .741

Money or balance transferring facility .648 .708

CSR practice of the company .603 .660

Employers/ Friends/ Relative influence .430 .580

News, sports and other update services .593 .440

Factor 2, Value Added Services

Bill pay facility (electricity, gas, telephone) .780 .726

High standard customer services .674 .681

Help line service (doctor, ticket, others) .609 .604

Security, call block, call tracking services .515 .562

Factor 3, Promotional Package

Cash back or bonus on use and recharge .549 .679

Access to credit balance .621 .598

Per second based pulse .384 .588

Easy and convenient recharge facility .721 .575

Factor 4, Service Price

Call/ SMS/ MMS Charge/ Rates .777 .865

Call charge/ rates to others operators .706 .791

Price of SIM/RIM card .515 .762

Factor 5, Mobility and Connectivity

Faster Internet service .514 .799

Network Coverage .229 .691

Roaming and ISD facility and charge .569 .672

Eigenvalue 5.731 2.028 1.709 1.653 1.381

Variance explained (%) 27.29 9.65 8.13 7.87 6.57

Cumulative variance 27.92 36.94 45.08 52.95 59.53

Reliability coefficient alpha 0.892 0.783 0.758 0.760 0.698

Number of items (total=07) 06 04 03 03 03

Extraction Method: Principal Component Analysis,

Rotation Method: Varimax with Kaiser Normalization

KMO = 0.734, Bartlett’s Test of Sphericity: p = 0.000 (x2 = 457.065, df = 210)

The Factor 1 named as “supplementary services” which consisted of six items namely ‘group conference facility’,

‘horoscope, fun, greetings, ring tone services’, ‘money or balance transferring facility’, ‘CSR practice of the

company’, ‘employers/friends/relatives influence’ and ‘news, sports and other update services’. This factor

explains 27.29 percent of the variance in the data with an eigenvalue of 5.731, the items associated with this factor

deal with the supplementary service which respondents like more (α = 0.892).

The Factor 2 is termed as “value added services” accounting for 9.65 percent of the variance with an eigenvalue of

2.028, this factor is loaded with four items. The items are namely ‘bill pay facility (electricity, gas, telephone)’,

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‘high standard customer services’, ‘help line services (doctor, tickets, others)’, and ‘security, call block, call

tracking services’. (α = 0.783)

Factor 3 was termed as “promotional package” (α = 0.758), explained the variance of 8.13% with an eigenvalue

of 1.709, and it contained three items including ‘cash bank or bonus on use and recharge’, ‘access to credit

balance’, and ‘per second based pulse’.

Factor 4 named as “service price” accounted for 7.87% of the variance, with an eigenvalue of 1.653, and a

reliability of .760. This factor was loaded with three attributes that referred to service price. The three attributes are

“call/SMS/MMS charge/rate”, “call charge/rate to other operators”, and “price of SIM/RIM card”.

Factor 5 was named as “Mobility and Connectivity” consisting of three items namely ‘faster internet service’,

‘network coverage’ and ‘roaming and ISD facility and charge’. This factor accounts for 6.57 percent of the

variance with an eigenvalue of 1.381 and reliability alpha is 0.698.

4.3. Differences between consumers groups and influencing factors

4.3.1. Differences among consumers groups regarding the factors influencing cell phone operators’ choice.

After determining the factors influencing cell phone operators choice decisions of consumers, in this study One

way Analysis of variance (ANOVA) has been used to investigate whether there are differences among stayers and

switchers regarding the influencing factors. Table 6 shows ANOVA results for differences among two consumer

groups regarding to choice decision factors.

In the table 6, (Appendix) ANOVA result revealed that only “supplementary services” factor shows a significant

difference between two groups with an F value of 17.22 and a significance value of 0.000. Table 6 illustrates that

both groups of consumers did not show significant differences from each other, except the “supplementary

services”, with respect to the factors that are influencing their cell phone operator choice decisions at the

significance level of 0.05.

4.3.2. Differences in Consumer Groups about Importance of cell phone choice factors

After identifying the significance difference among the two consumer groups regarding influencing factors,

present study find out how these factors much differ among the consumers group. The mean importance scores

for two groups of consumers with respect to factors influencing cell phone purchase decisions are presented in

Table 7.

Table 7 (Appendix) shows the mean importance scores for stayers and switchers with respect to factors

influencing cell phone operators’ choice decisions. According to this table, switchers gave most importance

(M=3.64) to “supplementary services” when compared to stayers (M=2.93). In addition, this factor has the lowest

mean score (M=3.47) across both groups of consumers. On the other hand, “call charge” has the highest mean

score for both consumer groups (stayers: M=4.25, switchers: M=4.45) which means that stayers and switchers

customers both gave the highest importance to this factor among all factors, and the both groups did not show any

significant difference with respect to call charge. Moreover, the second most important factor was found to be

“mobility and connectivity” for both groups of consumers.

5. Summary of findings and Managerial implications

• The telecommunication services in Bangladesh have witnessed the phenomenal change over the last few

years. The craze for mobile services in Bangladesh is increasing substantially. Keeping the high consumers

demand into consideration, many local and multinational companies have launched their services in the

market. Mobile communication technology has brought tremendous change in day-to-day activities

of common people to entrepreneurs in Bangladesh. Contrary to the introduction years of mobile phone, today

it has been used by almost all age groups, and by both males and females, and the gap between age groups

and the gap between males and females with respect to mobile phone usage/ownership has been decreased.

Rapid growth of customers makes the market more vulnerable and turbulent. Companies are trying to make

profit and even survive in a highly competitive environment. So, it becomes extremely important to learn

customers’ desired expectation and the factors that are influencing consumers’ purchase decisions.

• The study found that GP is the leader service provider company with 62.6% market share followed by

Banglalink 18.39%, Aktel/Robi 8.07%, City cell and Teletalk 4.02% each and Warid/Airtel 2.87%. About

48% customers are staying with the existing brand and about 52% are switched to other brands. The staying

rate is high for Banglalink and low for GP. On the other hand, switching rate is high for Gp and low for

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Banglalink, though GP is the market leader in this market and Banglalink is market challenger. So, as the

nearest competitor Banglalink's and other companies' switching rate are comparatively low than GP.

Therefore, differentiated marketing strategies should be stressed and executed by the companies to retain

their existing customers by effective market segmentation and service development.

• In this study, it has been found that both customer groups, stayers and switchers, give more importance on the

strong and wide network coverage, call charge, and faster internet features while choice, select and purchase

mobile phone operators' services. On the other hand, existing customers switch to other operators for getting

low call charge, wide and strong network coverage and incentives. Surprisingly, features affecting to choice

and cause behind switching to other operators are somewhat similar. So, marketer of this service should

emphasize on the explored features to attract new customers and retain old customers as well as to increase

market share.

• It has also been found that there are five factors which influence consumers’ cell phone operators’ choice

decisions those are supplementary services, value added services, promotional packages, service price and

mobility and connectivity. The factor result shows that customers’ choice varies on only one factor which is

“supplementary services” but the importance score of this factor is low. Switchers gave more importance on

factor 1 compared to stayers. Additionally, it is found that both groups did not show any significant

difference on other factors with respect to choice cell phone operators. Moreover, both groups, stayers and

switchers, gave highest importance on factor 4, “service charge” which has the highest mean score to this

factor among all factors, and the both groups did not show any significant difference with respect to service

charge. The second most important factor was found to be “mobility and connectivity” for both group of

consumers. So it is clear that customers of cell phone operators’ service, both stayers and switchers, give

more importance on service charge factor than other factor while choose and change their service operator.

From the managerial perspective, the findings of this study imply that it is not necessary to consider different

factors for marketer to attract new customers and retain old customers. The companies that wish to target

these groups must strengthen their brand equity besides providing low call charge by means of greater value

and improving mobility and connectivity service such as strong network coverage, faster internet facility

features. Moreover, the companies may design their communication messages according to the factors

considered as the most important by a definite customer groups.

6. Conclusions

Mobile communication technology has brought tremendous change in day-to-day activities of common people to

entrepreneurs in Bangladesh. Bangladesh has adopted information and communications technologies (ICTs) as

tools for development. At present there are six mobile phone operators are providing mobile phone network

services. The objective of the study was to better understanding of the factors influencing customers’ mobile phone

operators choice and change behavior as well as to explore the variation in the importance given by different

customer groups while choose mobile phone operators. The study found that both customer groups, stayers and

switchers, give more importance on the strong and wide network coverage, call charge, and faster internet features

while choice, select and purchase mobile phone operators' services. It was also found features affecting to choice

and cause behind switching to other operators are somewhat similar. So, service providers should emphasize on

the explored features to attract new customers and retain old customers as well as to increase market share. The

study showed that operators’ choice varies somewhat based on customers’ socio-demographic characteristics.

Thus, the companies that wish to target particular groups must strengthen their brand equity besides providing low

call charge by means of greater value and improving mobility and connectivity service such as strong network

coverage, faster internet facility features.

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Appendix

Table-1: Mobile phone operators according to customers group

Operators Name Customers Group Grand

Total

Percent (%)

Total Stayers Switchers

Grameen Phone (GP) 32 77 109 62.64

Bangla Link 22 10 32 18.39

Aktel/ Robi 09 05 14 8.07

City cell 06 01 7 4.02

Teletalk 06 01 07 4.02

Warid/ Airtel 03 02 05 2.87

Total 78 96 174 100

Percentage ( %) 44.8 55.2 100 ----

Table 2: Respondents’ socio-demographic profile

Descriptions N (%) Descriptions N (%)

Respondents’ Gender Respondents’ Occupation

Male 137 67.2 Student 111 63.8

Female 57 32.8 Service 57 32.8

Total 174 100 Business 6 3.4

Total 174 100

Respondents’ Age

19-35 165 94.8 Monthly Income

36-50 9 5.2 Up to 20000 132 75.9

Total 174 100 20000-40000 27 15.5

40000-60000 12 6.9

Respondents’ Education Above 60000 3 1.7

Up to SSC 12 6.9 Total 174 100

Up to Graduation 105 60.3

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Post Graduation 57 32.8

Total 174 100

Table 3: Features Influencing Consumers’ Cell Phone Operators’ Choice

Variables Statistics

N Mean SD

Network Coverage 174 4.93 .256

Call charge/ rates to others operators 174 4.53 .799

Call/ SMS/ MMS Charge/ Rates intra network 174 4.41 .676

Faster Internet service/ charge 174 4.41 .795

Per second based pulse 173 4.40 .897

High standard customer services 174 4.22 1.009

Access to credit balance/recharge facility 174 4.05 .907

Security, call block, call tracking services 174 3.95 .999

Easy and convenient recharge facility 174 3.95 .963

Roaming and ISD facility and charge 174 3.90 .892

Help line service (doctor, ticket, others) 174 3.69 1.127

Bill pay facility (electricity, gas, telephone) 174 3.66 1.018

CSR practice of the company 170 3.52 1.128

Money or balance transferring facility 174 3.52 1.013

High promotional program 174 3.50 .996

Cash back or bonus on use and recharge 174 3.48 .978

Employers/ Friends/ Relative influence 174 3.38 1.152

Price of SIM/RIM card 174 3.38 1.073

Group conference facility 174 3.34 1.178

News, sports and other update services 174 3.14 1.017

Horoscope, fun, greetings, ring tone services 174 2.47 .941

[Response range 5 (very important) to 1 (not at all important), SD- Standard Deviation]

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Table 4: Features Influencing Consumers’ Cell Phone Operators’ change

Variables Statistics

N Mean SD

Low call charge facility in intra network 96 3.96 1.744

Low call charge to other operators 96 3.94 1.625

Wide and strong network coverage 96 3.63 1.523

Cash back or bonus on use and recharge 96 3.61 1.511

Per second based pulse facility 96 3.55 1.542

Faster Internet service 96 3.47 1.569

Low price of SIM/RIM card 96 3.45 1.515

Money/ balance transferring facility 96 3.37 1.537

Access to credit balance/recharge facility 96 3.31 1.530

Roaming and ISD facility 96 3.27 1.538

Help line service (doctors, ticket collection) 96 3.16 1.434

Group conference facility 96 3.16 1.463

News, sports and other update services 96 3.14 1.414

Security, call block, call tracking facility 96 3.10 1.461

Bill pay facility (electricity, gas, telephone) 96 3.08 1.579

Employers/ Friends/ Relative influence 96 3.02 1.480

Various entertainment service facility 96 2.98 1.362

[Response range 5 (Highly influential) to 1 (not at all influential), SD- Standard Deviation]

Table 6: Result by customers’ category

Variables Sum of

Squares df

Mean

Square F Sig.

Supplementary

Services

Between Groups 5.272 1 5.272 17.229 .000**

Within Groups 17.136 172 .306

Total 22.408 173

Value Added

Services

Between Groups 1.777 1 1.777 3.503 .066*

Within Groups 28.416 172 .507

Total 30.194 173

Promotional

Package

Between Groups .166 1 .166 .384 .538

Within Groups 24.219 172 .432

Total 24.385 173

Service Price

Between Groups .444 1 .444 .759 .387

Within Groups 32.784 172 .585

Total 33.228 173

Mobility and

Connectivity

Between Groups .314 1 .314 .740 .393

Within Groups 23.789 172 .425

Total 24.103 173

Note: Significance level * p < 0.05

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Table 7: Mean difference result by customers’ category

Factors Customers

Group N Mean

Std.

Deviation Std. Error

Supplementary

Services

Stayer 78 2.93750 .723490 .193361

Switcher 96 3.64205 .490158 .073894

Total 174 3.47198 .626989 .082328

Value Added

Services

Stayer 78 3.70000 .759555 .202999

Switcher 96 4.10909 .697443 .105144

Total 174 4.01034 .727816 .095567

Promotional

Package

Stayer 78 3.62500 .569666 .152250

Switcher 96 3.75000 .681994 .102815

Total 174 3.71983 .654066 .085883

Service Price

Stayer 78 4.25000 .871559 .232934

Switcher 96 4.45455 .729911 .110038

Total 174 4.40517 .763515 .100254

Mobility and

Connectivity

Stayer 78 4.28571 .544705 .145578

Switcher 96 4.11364 .680831 .102639

Total 174 4.15517 .650283 .085386

Page 12: Factors Influencing to Bangladeshi Consumers’ Mobile Phone Operators Choice and Change Behavior

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